Wind Gap council members expect taxes will have to rise

October 20, 2004|By Fred Walter Special to the Morning Call - Freelance

Wind Gap Council will have to consider a property tax increase to balance next year's budget, but the rate won't be known until a tentative spending plan is completed.

Council members discussed some of next year's expenditures during a work session Tuesday night and will continue the review at 7:30 p.m. Nov. 16. A tentative budget is to be completed by Dec. 1.

The real estate tax rate is at 6.25 mills, a half-mill higher than last year. One mill of tax raises about $60,000 in revenue.

Council President Kerry Gassler said council has about $986,000 in expected revenue from current taxes and income sources to cover next year's costs that will require more than $1 million. This includes a new full-time police officer and a full-time street department employee. Property insurance rates are expected to rise because insurance companies will be trying to recover the high cost of paying for the recent flood damages.

"We have to start focusing on how we're going to pay for it," Gassler said, adding that "some sort" of tax increase is inevitable.

He said some expenses could be covered from a special fund based on an impact fee paid by Waste Management Inc. because the borough is near the company's Grand Central Sanitary Landfill in Plainfield Township. Many trucks hauling trash go through the borough to get to the landfill.

The borough is receiving about $150,000 from those fees paid at the rate of 20 cents per ton of trash handled at the landfill. That rate is to go up to 30 cents per ton next year.

The money is used for street improvements and other special projects. Councilman Winton Male said the borough shouldn't count on using the landfill fee income to cover recurring expenses because that money is not guaranteed future income.

Councilman Scott Parsons said he met recently with Waste Management officials to discuss a higher impact fee. He said the company prefers allocating funds for special borough projects. A committee will be formed to prepare a list of specific needs to be considered for funding by Waste Management.

Borough Tax Collector Pat Sutter urged council to be more persistent in persuading the company to have all trash haulers bypass the borough when going in and out of the landfill. "Tell them we'd like the trucks off the streets," he said.